KARACHI, April 1: Consumers received a shock on the first day of new month when retailers demanded Rs185-190 for 10 kg bag of wheat flour No. 2.5 against Rs150-160 earlier and Rs40-42 per litre for fresh milk as compared to Rs36-38.

However, the prices of chakki atta and fine atta remained unchanged at Rs24 and Rs23 per kg, respectively. Many retailers were seen offering excuse for having no flour in stock, while all the retailers removed the banner from the shops displaying Rs150 per 10 kg bag rate.

The increase in wheat support price to Rs625 from Rs510 per 40kg had caused price hike in flour varieties. Flour millers had suddenly pushed up the rates. However, shopkeepers say the prices may stabilize after five days as consumers’ buying euphoria, which remained high during the first five days of any month, would subside.

Many retailers were charging Rs18-19 per kg (loose) for flour No. 2.5 (mill atta) as compared to Rs15 per kg while other retailers are set to charge higher from Wednesday.

In fresh milk, the city government continued its price checking campaign in vain in a big city with a thin strength of 36 officials (18 DDOs and 18 mukhtarkars). Their lethargic effort is evident from the fact that only 19 persons were sent to jail after imposition of challan on 41 retailers of Rs199,000 on Tuesday.

Market sources said that the milk retailers, who pay the fine on the spot, easily recover the amount in few seconds by adding water in the milk. Sources said the city government officials usually do not return to the retailers for at least a month once if they impose a fine with heavy amount. Sources said that the amount, recovered from the retailers, is divided among the officials and some times with the Police, who escort the city government officials at the time of raids.

For the last few years, the city government and the stake-

holders in the milk business had been engaged in a price fixing debate. Every time the stakeholders overwhelm the officials to let them sell milk at the enhanced rate by greasing their palms.

The city government also failed to stem the inflation in prices of red meat and other commodities. Meat sellers have further enhanced the rate owing to multiple reasons but so far no action has been taken.

The maker of Everyday tea whitener has also increased the rate and market is abuzz with reports that tetra milk producers are also flexing up their muscles to come out with a fresh raise because the gap between the fresh milk and tetra milk (one litre) is reduced to Rs2 to 4 per litre. Previously this gap was of Rs6-8 per litre.

The city government had initiated some probe in the rising prices of tetra milk in March 2007 and met the stakeholders of tetra milk. So far, there has been no success in this regard and the tetra milk producers have been left to enjoy a free hand in pushing up the rates.

There has been a tremendous increase in the prices of branded ghee and cooking oil despite the fact that palm olien rates had been falling for the last two weeks. A major price decline had come only in 16 kg tins but the users of this product (sweet and bakery item makers, caterers etc) instead of cutting the rates had enhanced the prices.

The poultry people continued to play havoc with the prices as some retailers were charging Rs116 per kg for broiler live bird on Tuesday despite the official rate of Rs112 per kg announced by the Karachi Wholesalers Grocers Association (KWGA). The rate of Pakistan Poultry Association (PPA) is Rs110 per kg.

The Karachi markets have three kinds of poultry rates as majority of retailers do not sell the bird at official rate because of disparity in the rates of KWPA and PPA.

The price of basmati varieties had been surging in the markets for the last one year owing to rising exports. In July-Feb 2007-08, basmati rice exports stood at 655,500 tons ($444 million) as compared to 583,035 tons ($342 million) in the same period of last fiscal year.

There has been some stability in the prices of onion, potato, tomato, ginger and garlic because of frequent supplies from the producing areas. President Falahi Anjuman Wholesale Vegetable Market, New Subzi Mandi, Haji Shahjehan said that onion price in the market hovers between Rs4-5 per kg in which the transportation cost ranges between Re one to Rs1.50 per kg after the increase in diesel rates. It means that the growers are at a loss because they are getting Rs2 to 3 per kg for onion.

The commodity is coming from Sindh crop and Balochistan crop. However, its export has been suspended. Currently, India is exporting onion to the Middle East.

He said that the wholesale price of potato ranges between Rs8-9per kg. It is being exported to Malaysia, the UAE and Colombo while little quantity is being exported to Iran. Potato is arriving from Punjab’s new crop.

The wholesale tomato price is between Rs15-20 per kg. It is arriving from Sindh’s crop. The wholesale rate of Chinese ginger is Rs40-45 per kg while Bangkok’s ginger is priced at Rs25 per kg. Garlic wholesale price is Rs15-20 per kg and it is arriving from Sindh crop and China. He said that overall prices of vegetables have fallen as compared to January this year.